2026 Insurance Agency Valuation Benchmarks: What Agencies Are Worth by Region and Book Size
The question every agency owner eventually asks is the same: what is my agency actually worth?
Not what you have been told by a friend who sold, not what the PE platform offered your competitor, not what the rule-of-thumb formula on an insurance forum says. What is it actually worth — in 2026, given your book size, your line of business mix, your region, and your operational profile.
This page compiles directional valuation benchmarks for independent P&C insurance agencies in 2026. These ranges reflect observable patterns in the current M&A market — not guarantees, not appraisals, and not legal or financial advice. Every agency transaction is different. What you see here is a starting point for understanding where you sit before a formal valuation process.
If you want a specific number for your agency, that requires a real conversation about your actual book. Get a free valuation conversation with COVU here.
Why Benchmarks Matter — and Why They’re Not the Whole Picture
Insurance agency valuation is not a formula. Two agencies with identical revenue can sell for meaningfully different multiples because of retention rates, owner dependency, line of business mix, carrier concentration, producer agreements, AMS data quality, and a dozen other factors buyers price into their offers.
But benchmarks matter because they tell you the range you should be thinking about — and whether the offer you are looking at is reasonable, generous, or well below what comparable agencies have transacted at.
The ranges below reflect the market as it stood in early 2026, based on observed transaction patterns in private agency M&A. They are directional. Use them to orient yourself, not to negotiate a deal.
How Insurance Agencies Are Valued in 2026
Most P&C agency transactions use one of two methods, or a combination of both:
Revenue multiples. A multiple applied to the agency’s trailing twelve months of commission and fee revenue. More common for smaller agencies (under $3M revenue) and personal lines-heavy books where EBITDA margins are thinner and harder to normalize.
EBITDA multiples. A multiple applied to trailing EBITDA after adding back the owner’s above-market compensation and one-time or non-recurring expenses. More common for larger agencies and commercial-heavy books where margin is more meaningful and more consistent.
The method matters because it changes what you are optimizing. An agency being valued on revenue wants to protect its top line. An agency being valued on EBITDA wants clean financials, normalized add-backs, and a compelling margin story.
2026 Valuation Benchmarks by Book Size
These ranges represent the broad middle of the private agency transaction market — not the outliers at either end. Agencies at the top of each range typically have strong retention, low owner dependency, clean AMS data, and diversified carrier relationships. Agencies at the bottom have the opposite.
Under $1M in Annual Revenue (Micro Books)
Typical method: Revenue multiple or commission multiple
Directional range: 1.0x–2.0x annual revenue
Micro books are common acquisition targets for growing agencies looking to add a client base rather than build one from scratch. Valuation is highly dependent on book retention, carrier appointment transferability, and how involved the seller needs to remain post-close. Seller financing is common. All-cash offers at the high end of this range are rare.
At this size, the book often sells for what a buyer can recoup in 18–24 months from the retained commissions — which means retention quality matters more than almost anything else.
$1M–$3M in Annual Revenue (Small Agency)
Typical method: Revenue multiple
Directional range: 1.5x–2.5x annual revenue
This is the most active segment of the private agency M&A market by transaction count. Strong buyer demand from individual acquirers, small platform rollups, and growing agencies seeking tuck-ins.
The spread within this range is wide because agency quality varies dramatically. A $2M book with 92% retention, no key-man dependency, and clean AMS data looks very different to a buyer than a $2M book where the owner handles all renewals personally and two of the top five accounts are carrier-concentrated relationships that might not transfer.
$3M–$10M in Annual Revenue (Mid-Size Agency)
Typical method: Revenue multiple or EBITDA multiple depending on book composition
Directional range: 1.8x–3.5x revenue, or 4x–7x EBITDA for commercial-heavy books
At this size, buyers begin running full diligence processes and the transaction dynamics shift. PE-backed platforms, regional brokerages, and strategic acquirers are all active buyers. Competition among buyers for well-positioned $3M–$10M agencies can be meaningful.
Commercial-heavy books at this size frequently attract EBITDA-based offers that exceed what a revenue multiple would produce. A $5M commercial-lines agency with 40% EBITDA margin and strong retention may transact at 5x–7x EBITDA — which can be 3x+ revenue. Personal lines-heavy books are valued more conservatively. Revenue multiples of 1.8x–2.2x are more typical.
$10M–$30M in Annual Revenue (Growth Agency)
Typical method: EBITDA multiple
Directional range: 5x–9x EBITDA
This is where the acquisition market becomes more institutionalized. Most buyers at this size are PE-backed platforms or well-capitalized regional brokerages running formal deal processes. The seller needs advisors — a broker or M&A attorney — not just a handshake agreement.
EBITDA normalization is critical at this size. Buyers will scrutinize owner compensation, rent paid to related parties, discretionary spending, and non-recurring items. Agencies with strong operational profiles — documented workflows, multiple producers, low owner dependency — consistently command the upper end of this range.
$30M+ in Annual Revenue (Platform Agency)
Typical method: EBITDA multiple
Directional range: 7x–12x+ EBITDA (strategic buyers)
At this size, the market is thin — there are fewer buyers, and the ones that exist are sophisticated. Transactions frequently involve rollover equity, earnouts, and multi-year transition arrangements. The seller’s operational maturity, management team depth, and growth trajectory matter as much as trailing EBITDA.
Multiples at the high end of this range are typically strategic — a buyer who sees significant synergy value will pay above what a financial buyer would justify on trailing EBITDA alone. The $30M+ range is highly deal-specific and requires a formal process with qualified advisors.
2026 Valuation Benchmarks by Region
Regional differences in valuation reflect differences in buyer demand concentration, competitive density, and market growth rates. The ranges below are observed tendencies, not rules.
Southeast (FL, GA, NC, SC, TN, AL, MS)
Demand: High. PE-backed platforms are actively deploying in the Southeast, driven by population growth and commercial expansion in Atlanta, Charlotte, Raleigh, Nashville, and Tampa Bay metros.
Directional premium vs. national baseline: Slight premium (0.1x–0.3x) for agencies in fast-growing metros. Rural and coastal market agencies may price at or below the national baseline depending on storm-exposure concentration.
Northeast (NY, NJ, CT, MA, PA, MD, VA, DC)
Demand: High for commercial-heavy agencies. The density of commercial lines accounts, high commission rates (New York leads nationally), and proximity to institutional buyers supports strong pricing for well-positioned agencies.
Directional premium vs. national baseline: Neutral to slight premium for commercial-heavy agencies. Dense competitive markets mean buyers have options.
Midwest (OH, IL, IN, MI, WI, MN, MO, IA, KS, NE)
Demand: Moderate to high. Ohio, Illinois, and Michigan have deep IA channel histories and active M&A markets. Rural Midwest agencies in agricultural-heavy markets may see narrower buyer pools.
Directional premium vs. national baseline: Neutral. Deep buyer demand for well-positioned commercial agencies. Agricultural-heavy books may price at a slight discount due to buyer unfamiliarity.
Texas and Mountain West (TX, CO, AZ, NM, NV, UT)
Demand: High and growing. Texas’s commercial market growth, combined with PE activity in Dallas and Houston metros, supports strong pricing. Mountain West markets are less institutionalized but growing.
Directional premium vs. national baseline: Slight premium in Texas urban and suburban markets. Mountain West agencies price at or near the national baseline.
West Coast (CA, WA, OR)
Demand: Moderate. California’s insurance market complexity introduces diligence complexity that some buyers price into their offers. Agencies with strong surplus lines placement capability and clean wildfire-aware books can attract full-market pricing.
Directional premium vs. national baseline: Neutral to slight discount for personal lines-heavy California books. Commercial-heavy books in the Bay Area and LA metro attract market-rate to slight-premium pricing.
What Moves You Up or Down Within Your Range
The benchmarks above represent the middle of the market. What determines where your agency falls within any range comes down to the same factors buyers price in every transaction:
Retention rate. A 93%+ retention rate is a strong signal. Below 85% is a discount signal.
Owner dependency. If the top five accounts call you personally and you handle all renewals, buyers are pricing your absence into their offer.
Carrier concentration. More than 40%–50% of revenue from a single carrier is a diligence flag. Buyers want to see diversified carrier relationships.
Line of business mix. Commercial lines carry higher margins and stronger retention. Personal lines-heavy books are valued more conservatively.
Commission mix. High contingent income is unpredictable. Buyers will discount or exclude it from their base EBITDA calculation.
AMS data quality. Clean, consistent AMS data that survives diligence accelerates a transaction and reduces price-chip requests.
Staff and producer tenure. Buyers are acquiring recurring revenue streams that depend on client relationships. Informal producer arrangements and at-will employment create concentration risk buyers price accordingly.
How to Use This Information
These benchmarks are a starting point for owner-level orientation — not a substitute for a real valuation process.
If you are three to five years from a potential sale, the relevant question is not what your agency is worth today. It is what it could be worth, and what specifically is holding it back from the upper end of its range. That is an operational and strategic conversation — and it starts with understanding the gap between where you are and where you could be.
If you want to understand specifically what your agency is worth and what is limiting your multiple, schedule a free valuation conversation with COVU.
Frequently Asked Questions
What multiple do insurance agencies sell for in 2026?
Most private P&C agency transactions in 2026 fall in the 1.5x–3.5x revenue range for agencies under $10M in revenue, and 4x–9x EBITDA for larger commercial-heavy agencies. The specific multiple depends on retention rate, owner dependency, line of business mix, carrier concentration, and operational profile. These are directional benchmarks, not guaranteed transaction outcomes.
How do I know if my agency is above or below the market multiple?
The primary factors are retention rate (above 90% is above market; below 85% is a discount signal), owner dependency (how many key accounts would leave if you sold), carrier concentration (more than 40%–50% in one carrier is a flag), and commission mix (high contingent income gets discounted). A formal valuation conversation will give you a specific picture of where your agency sits.
Does book size affect the multiple I can get?
Yes. Larger books typically command higher multiples because they attract a broader buyer pool, support EBITDA-based pricing, and carry lower per-unit risk for buyers. A $15M commercial agency with strong margins will generally command a higher EBITDA multiple than a $2M personal lines book.
Are regional differences in valuation significant?
Regional differences are real but generally secondary to book quality and operational factors. A well-run agency in any major metro market will attract market-rate or better pricing. Regional factors become more relevant for rural agencies, coastal markets with weather exposure, or markets with limited buyer competition.
What is the difference between a revenue multiple and an EBITDA multiple?
A revenue multiple is applied to total commission and fee income. An EBITDA multiple is applied to normalized earnings (usually after adding back owner compensation above market rates and non-recurring expenses). For well-run commercial agencies, EBITDA-based pricing often produces a higher total purchase price than a revenue multiple alone would suggest.
Schedule your free agency valuation conversation with COVU →
For state-specific benchmarks: Insurance Agency Valuation by State
This page provides general market context and directional benchmarks for informational purposes only. It does not constitute legal, financial, tax, or investment advice. Agency valuations are highly specific to individual circumstances. Always consult qualified advisors before making any decisions regarding the sale or purchase of a business.